A "Listless" Market: Here's Why

Despite the positive news of a massive stimulus program from China, which initially buoyed commodity stocks, the market is trading in a listless manner.

We are now in the midst of what one trader called "The Great Boredom," that period where we know the economy is going to slow dramatically, but it is too early to aggressively buy a rebound.

Positive news on China stimulus, but market listless. This is "The Great Boredom":

--know the economy slowing

--but too early to buy a rebound

Consider:

1) GMtraded as low as $3.02, the lowest level since the 1940s, as Deutsche Bank slaps a price target of $0 on it;

2) Goldman Sachs down another 11 percent today to a 5-year low. The thinking on the Street is that the assets on their books are declining in value, and with IPOs, secondaries, and the like practically nonexistent, it is simply extraordinarily difficult for them to make any money in the near future.

3) Fannie Mae's numbers were awful (loss of $29 b!); they are losing money so fast that they will have to access the TARP program early next year;

a) Investor Carl Icahn reported an 8.9 percent stake in containerboard maker Temple Inlandon October 17th. Not clear when he accumulated the shares, but the stock has gone from the $15-$20 range in the last few months to $5.26 today;

b) On September 23rd, Warren Buffett invested $5 billion in Goldman preferreds, along with an additional $5 b in warrants at $115. On September 24th, Goldman issued $5 b in common stocks at $123. The stock is $69 today.

The one positive: the Fed is directly buying assets from AIG, meaning they are starting to segregate the assets rather than let some other manager deal with it. That's a positive.